Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
: k  W2 q5 a$ y; b4 g7 M7 A, i) oexpect much from Crude Oil producers and future is not with the
0 h. i: M, }% N8 u6 a. D9 R9 Tcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
2 X+ M1 x4 j% F; U2 U3 Pcrude prices improves. This implies also to good names such as Shell,
, A! x' ?/ S; O. x7 D+ w# U1 bEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
( P4 }/ i: t. p* z: pmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
! e. S! o) k# i+ b" a: {- FA year ago these things would have spiked the price of crude oil by at
+ s1 k, G+ p. Dleast $50.00 per barrel. Today, oil price declined by a record amount.

0 _: c3 g$ {1 n3 L
5 ?* F% z" _8 L3 E& o; X- R5 eThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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9 p/ w2 S! t' c8 d* Q7 Z: Q1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
/ F  J: j2 Z( p- A+ B& LArabia.

2 q" B: W& _" {8 A1 D# v
4 K9 E* [/ ]5 M2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

$ ^2 E4 D2 t% O
& n8 o  m# \, K1 }& {; l; P3. New methods of injecting CO2 and surfactants into oil wells is
4 D0 V$ O4 H( J& R; @being used to double their output.
3 }) d9 H; k( W" w9 ]+ F, C

4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
8 U* A8 m  |& A" B/ T+ J3 y6 }, jracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
! \5 }" v$ K( F) Xare now selling their used oil to bio-diesel producers. Every pork,
  d& Y. E% w: ?1 [/ V6 s6 r" Q/ w! f% icattle, turkey and chicken processing plant will soon sell their fat
  U+ z9 v2 ~- ?to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
) e3 e+ r3 G* l9 T2 _' Y& _construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


" D4 X$ o7 _( [3 G: C7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
$ S  j# N2 r( L" Q3 j% Owith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
/ v6 A& K) j5 s. o7 Bequipment.

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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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# T; N! z. X& v9 S: E; @% e$ I8. Cities and counties throughout the US are selling the rights to
$ z  Z& W: r5 n# D) U: _3 Wcapture methane gas from landfills. This is a huge source of gas
. X+ I; v. K7 b) F4 oavailable at very little cost or risk. The gas is displacing crude
# t. k# r& u3 q' Soil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" v6 z3 a. [! r  qoil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
  w; J* X/ o: {) `; Fsource. Three new wind turbines are being erected every day in the US.


Each of the above by itself will not make a large difference in the
( [& _4 M0 T, F0 ^: qprice of crude oil but the sum of all of them together is world
+ y% ?% S5 \3 n; ?& G5 j' schanging. The important thing is that OPEC no longer has the ability
to control oil prices.


3 c" B! a5 I8 V" O% m4 AWith the above scenario, I still believe that there are under
% K8 ]: ^. ^5 U% e, ]) uperformed OIL companies and probably they are yet to get the justified
7 a  O2 c$ J5 n5 O3 l$ ^value .....
' E$ c0 `( g8 ]/ h: b$ IIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only